Cargill workers vote to end dispute at US beef plant idled since April

Cargill plans to resume beef production at a plant in Fort Morgan, Colorado, in September following a vote by unionized workers to end a labor dispute that halted cattle slaughtering since April. The U.S. beef industry has faced challenges this year, with soaring beef prices while cattle numbers have shrunk to their smallest level in 75 years.

Cargill suspended cattle slaughtering at the Fort Morgan facility a month earlier amid a pay dispute involving about 1,700 workers who were laid off in May. Workers overwhelmingly accepted a contract proposal from Cargill that they initially rejected, according to Dean Modecker, who leads the Teamsters Local 455 union representing the workers.

Modecker noted that while the deal didn't meet their expectations, the workers are concerned about their livelihoods. Cargill welcomed the workers' decision to accept the agreement. The company and JBS, which also resolved a labor dispute this year, have previously resisted demands for higher pay. In the initial year of the new contract, workers' base pay will increase by $1.40 per hour, with wages rising to $23.50 from $15.35 since 2018.

Tyson Foods recently announced plans to close or sell three U.S. beef plant and packaging sites due to the cattle shortage. Supplies dwindled as a persistent drought scorched grazing lands in the western U.S. and Mexico blocked imports to prevent a livestock pest from entering the country. Imports are set to resume this month. Modecker acknowledged the industry's current struggles but hopes that businesses will become profitable in the fourth and fifth years of the contract, allowing them to benefit from the improved situation.